Std Life Endowment Payout

Iona_Penny

OH and I have 2 endowments which were originally taken out to produce £29,950. Two years ago the worst-case forcast on this policy was around £23,000 so we remortgaged to have only £20,000 on interest only with the idea that this first maturing policy would cover this.

Today the 'prediction' arrived and was ... £18,124 ! with the warning that this may still change as the market can vary in the next month. Very iritating that we thought we had this covered. We do have another policy to pay out in August but as that was only for £6000 at outset can't bear to think what final value this will have ( hopefully at least £1876!!!)

Sorry guys just wanted a grumble!

EdInvestor

Hopefully the windfall will help a bit at least.

Skintymcginty

This is a really thick question, I apologise in advance - is the "windfall' and the share offer the same thing?

EdInvestor

is the "windfall' and the share offer the same thing?

The windfall is the "free" shares, but we shouldn't really call it a windfall. Officially, it's compensation for loss of ownership of the company.

The shares are not really "free", as we've owned the company all along as its a mutual owned by its members. But the issue of the shares reflecting this ownership actually puts a tradeable value on it - we will be able to buy and sell the shares, which you can't do with your ownership share at a mutual.

At the moment our individual ownership stake is bound up in the value of our policies, after demutualisation the two will be separated out:there will be the shares and the policy, each with a separate value.